No, mandatory grants are a refund against all monies contributed towards the skills development levy paid to SARS and not on funds spent on training. This is done via the annual Mandatory Grant claim back.
The Skills Development Act notes that a company whose annual payroll exceeds R500K per annual must pay 1% of their annual payroll to SARS on or before the 7th of each month. Companies can claim back 20% (called the Mandatory Grant) of the annual 1% paid to SARS via compiling and submitting the Actual Training Report (ATR) and Workplace Skills Plan (WSP) to the relevant SETA each year on or before the 30th of April.
There are 21 SETA’s under which companies can be registered according to their main business activity, and each has its own requirements on successfully submitting the Actual Training Report and Workplace Skills Plan.
The company needs to appoint a Skills Development Facilitator who will then be granted access to the company’s profile on the specific SETA. The Skills Development Facilitator will obtain all the needed info according to the SETA’s requirements in order to apply on behalf of your company for the Mandatory Grant.
Should your company’s payroll exceed the R500K threshold, please contact your qualified appointed Skills Development Facilitator to compile and submit your Actual Training Report and Workplace Skills Plan to claim back your 20% of Skills Development Levies.
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